1.4 Market failure

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Define the term asymmetric information indicated in bold in the text (paragraph [6]).

Define the term asymmetric information indicated in bold in the text (paragraph [6]).

Define the term asymmetric information indicated in bold in the text (paragraph [6]).

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).

Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).

Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).

State two government responses to the abuse of monopoly power.

State two government responses to the abuse of monopoly power.

State two government responses to the abuse of monopoly power.

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss the view that competitive markets will always achieve allocative efficiency.

To what extent is advertising the most effective way of increasing the consumption of merit goods?

To what extent is advertising the most effective way of increasing the consumption of merit goods?

To what extent is advertising the most effective way of increasing the consumption of merit goods?

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Define the term sustainability indicated in bold in the text (paragraph [6]).

Define the term sustainability indicated in bold in the text (paragraph [6]).

Define the term sustainability indicated in bold in the text (paragraph [6]).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).

Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).

Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Discuss the implications of the direct provision of public goods by a government.

Discuss the implications of the direct provision of public goods by a government.

Discuss the implications of the direct provision of public goods by a government.

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.

Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.

Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.